Thursday, February 12, 2009

Qs Happy Trails

Last July I introduced Happy Trails for the IWM.
This is an updated version for the Qs as I continue to build the Qs Dirty Dozen.
The top report has pyramiding turned on and requires a maximum 24x position.
The results speak for themselves.
I'm including this system in the Dozen for a number of reason. First, it doesn't use the RSI(2), and as such enhances the reliability of signals based on non-correlated factors (systems). Second, if you study this thing on your own TS chart you'll see how the sequence of the pyramiding trades help define the strength of momentum in either direction (homework for the True Believers). That whole momentum building concept is a study in itself that may see further investigation in my (very limited) spare time.
The report below is the basic system. . . so there's not a lot of activity based on 70 day cycles within a 16 month test period. That's why pyramiding was turned on for the top report.


Those who followed the first version of Happy Trails will notice that I've added a new input to reflect the variable momentum in the long and short cycle. While optimizing with the added input yields only marginal gains, at the same time the similar of the inputs reflects the reliability of the system. For the Qs test I turned off the stops previously engaged. TS users can fiddle with their favorite stops to tweak performance and manage risk to their own comfort level.
The inputs for Happy Trails with pyramiding turned on are a bit different, to reflect the increased activity. . .(60,70,13) so adjust accordingly when performing your own testing.

4 comments:

Damian said...

Interesting system - I'm not familiar with pyramiding in TS - does it just keep adding the same amount of shares as the initial buy every time it has a buy signal before a sell signal?

bzbtrader said...

Damiam,
Here's a link to a previous post about pyramiding:
http://bzbtrader.blogspot.com/2008/09/kop-10-and-riskreward.html
Hope that helps.

Damian said...

Ok sure that answers part of it - but does it always do the same amount?

bzbtrader said...

Damian,
Since the order cue basically runs in a do-loop, the consecutive orders are of the same size.